Fitch upgrades Merck

Fitch Ratings said it upgraded Merck & Co., Inc.'s long-term issuer default rating to A+ from A.

The outlook is stable.

The agency said the rating reflects the favorable aspects of the company's operating profile relative to innovative pharmaceutical industry peers Eli Lilly (A/stable) and Bristol Myers (A-/stable) in terms of scale, breadth, depth, geographic reach and patent risk.

Merck's intermediate-term patent risk is manageable, and an advancing pipeline will offset some sales losses to generic competition, supporting the prospects for operational and financial stability, Fitch said.

Gross leverage durably at or below 1.7x, balancing acquisitions and share repurchases with debt issuances are supportive of its A+ rating, the agency added.

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